BBCL's IPO

The stock markets have been improving over the last couple of months. A recent spate of IPOs seems to suggest that, promoters and company managements are quickly moving to take advantage of the improved market sentiment to raise funds. From jewellery manufacturers and exporters to telecom tower companies and rating agencies all have raised money from the primary markets over the past two months. So, how could players from the fastest growing DTH market not be a part of this rush? Here is one such player which will tap the primary market in a short while. It is the youngest DTH service provider in the Indian market, which operates under the “Videocon d2h” brand. Bharat Business Channel Ltd (BBCL), has expressed its intention to raise funds from the primary market and filed the DRHP with SEBI.

BBCL is coming up with a public issue of equity shares of face value of Rs 10 each aggregating to Rs 7000 million. The company is also ready to make a pre-IPO Placement of up to 10 million equity shares aggregating up to Rs 500 million. If the pre-IPO placement is successfully completed, the IPO issue size will be reduced to the extent of such pre-IPO placement, subject to the issue size constituting at least 25% of the post-Issue paid-up equity share capital of the company.

BBCL is a DTH service provider and operates under the “Videocon d2h” brand. The company is part of Videocon group and is into providing digital quality entertainment by distributing multiple television channels and allied video and audio services to its subscribers. The company has a portfolio of over 400 national and international channels and services, including 22 HD channels and 41 audio and video Active Music Channel Services. It commenced its DTH operations in July 2009. As of September, 2012, BBCL has successfully added 6.62 million gross subscribers translating into a market share of around 13% across India. 

BBCL provides DTH services at a considerably lower cost as compared to other DTH service providers in India. The company has a wide and established network thanks to the reach of its parent group's consumer durable arm. Looks like a good business of the future to invest in, but we would rather wait until the details are out on the specifics of the issue. These details would throw light on the valuations. At present, the only listed key competitor for BBCL is Dish TV India Ltd.